Organigram Holdings Inc. (NASDAQ:OGI) (TSX:OGI), and its subsidiary Organigram Inc., a leading licensed producer of cannabis in Canada, has reached a proposed settlement in a class action related to medical cannabis that was voluntarily recalled in December 2016 and January 2017. The Supreme Court of Nova Scotia approved notice of settlement will be sent to class members beginning on June 24, 2022.
As part the settlement, the company has agreed to pay an aggregate of $2.31 million, which amount has been previously accrued in the company’s financial statements for the prior fiscal year.
For the proposed settlement to become effective, it must be approved by the Court. The Court must be satisfied that the settlement is fair, reasonable and in the best interest of the class. On August 31, 2022, the Court will hold a hearing to consider whether to approve the settlement. If the settlement is approved by the Court, the settlement amount will be used to provide class members a refund of the amounts paid to purchase the voluntarily recalled product, less any refunds they have already received, as well as the payment of legal fees. In addition, the company has agreed to pay the third-party claims administration costs.
Photo by Tingey Injury Law Firm on Unsplash
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